Corporate Governance

Solidarity Saudi Takaful Company is committed to, continuously; improve its corporate governance practices in order to remain an ethics driven organization, focused on the equal treatment of all stakeholders. Solidarity Saudi Takaful Company is dedicated to act in its stakeholders' best interest, maximizing customer base and optimizing shareholder value while providing the best work environment to its employees and ethical business dealing with its services providers and partners.

The Shariah Committee members of Solidarity Takaful are renowned for their competence, broad experience and proficient specialization in Islamic Finance after having conducted numerous studies and research, particularly in the banking and insurance sectors. They have also participated in various local, regional and international legislation committees. The Shariah Committee members monitor on an ongoing basis all the dealings of the company in order to ensure continuous compliance with the provisions of Islamic Law

In accordance with the cooperative insurance principle:

The Company will maintain accounts for insurance operations separate from the shareholders' accounts in accordance with the Implementing regulations provisions of the Law on Supervision of Co-operative Insurance Companies.

The Company undertakes to invest all funds, whether relating to shareholders or the policyholders strictly in accordance with the rules of Shariah principles and in consistent with the company Investment policy approved by the Saudi Arabian Monetary Agency. The company will add or subtract the investment return of the policyholder's invested funds, and subtracting the general expenses related to the policyholder's portion of the investment activities.

The Company, as the insurance administrator, will manage the insurance operations in favor of the policyholders. In case of net surplus in the insurance operations' account, it will be distributed in the following way:

Ten percent (10%) of the annual net surplus shall be distributed to the policyholders directly or in the form of reduction in premiums for the next year.

From the remainder, if any, an amount equal to (05%) of the total written premiums shall be carried forward to the shareholders' account as a fee against the Company's management of the insurance operations and investment in favor of the policyholders. This management fee shall not exceed 90% of the net surplus.

From the remainder, if any, following the distribution referenced (a) and (b) above, company shall carry forward (10%) of the net surplus to the shareholders' account as performance incentive.

The Company may maintain the remainder of net surplus, if any, in the policyholders' account or distribute it wholly or partially to the policyholders following approval by the Saudi Arabian Monetary Agency and the Company's General Assembly.